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MRG METALS LIMITED Capital/Financing Update 2017

Dec 18, 2017

65374_rns_2017-12-18_71908c6e-6b8e-4742-b477-ec7ad4943421.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

19 December 2017

MRG METALS LIMITED

NON-RENOUNCEABLE ENTITLEMENT OFFER – LETTER TO SHAREHOLDERS

MRG Metals Limited ( Company ) releases the attached letter regarding the non-renounceable entitlement offer, which will be sent to shareholders of the Company.

Yours faithfully,

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SHANE TURNER Director/Secretary

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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19 December 2017

[Name] [Address 1] [Address 2] [Address 3]

Dear Shareholder

Notification of non-renounceable entitlement issue

On 13 December 2017, MRG Metals Limited ( Company ) announced a non-renounceable entitlement issue ( Entitlement Offer ). An offer document setting out the terms and conditions of the Entitlement Offer was lodged with ASX Limited ( ASX ) on 19 December 2017 ( Offer Document ) and will be sent to all eligible Shareholders together with a personalised Entitlement and Acceptance Form on 29 December 2017.

This letter gives Shareholders brief details of the Entitlement Offer, certain information required under the ASX Listing Rules, proposed use of funds and the important dates of the Entitlement Offer. The Entitlement Offer is non-renounceable which means that rights cannot be traded or sold.

The Entitlement Offer is only open to eligible shareholders, being Shareholders whose registered address is in Australia or New Zealand at 7.00pm AEDT on 2 December 2017.

The Company has determined that it would be unreasonable to make offers under the Entitlement Offer to all Shareholders with addresses outside of Australia or New Zealand ( Ineligible Shareholders ) having regard to the Company's current shareholding and the costs of complying with legal and regulatory requirements in those jurisdictions. Accordingly, the Entitlement Offer is not being extended to Ineligible Shareholders. Any entitlements to such shares with attaching options will lapse and the relevant shares with attaching options will form part of the shortfall under the Entitlement Offer. This letter constitutes the notice that the Company is required to give each Ineligible Shareholder under ASX Listing Rule 7.7.1(b).

Funds raised under the Entitlement Offer may be used to pay the costs of the issue, to progress the exploration program of the Company's projects, for working capital requirements and to pursue new opportunities.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Details of the Entitlement Offer are as follows:

Type of issue Pro-rata non-renounceable entitlement issue of fully paid ordinary
shares (Shares) of 1 Share for every 2 Shares held, with 1 attaching
Option for each Share allotted pursuant to the Entitlement Offer,
exercisable at $0.01, with expiry date of 20 December 2020
Issue price $0.005 (0.5 cent) per Share.
Maximum Number of Up to 200,389,880 Shares.
shares to be issued
Maximum Number of Up to 200,389,880 Options,
options to be issued
Amount to be raised Up to $1,001,949.
Rights trading Rights cannot be traded or sold.
Additional Shares The directors of the Company reserve the right to place the Shortfall
and shortfall Shares with attaching Shortfall Options at their absolute discretion.
Listing The Company has applied to ASX for quotation of the Shares and
attaching Options.
Key indicative dates*
Announcement of Offer 13 December 2017
Lodgement of cleansing notice, Offer Document and 19 December 2017
Appendix 3B with ASX
Notice sent to shareholders 21 December 2017
Ex Date 22 December 2017
Record Date for determining entitlements 7pm AEDT on 27 December
2017
Offer Document despatched to eligible shareholders and 29 December 2017
Company announces despatch has been completed
Rights Issue Offer opens for receipt of applications 29 December 2017
Closing Date 5pm AEDT on 18 January
2018
Securities quoted on a deferred settlement basis 19 January 2018
ASX notified of under subscriptions 23 January 2018
Issue date 25 January 2018
Despatch date of Holding statements 25 January 2018
Trading commences for New Shares on a normal basis 25 January 2018

*The above timetable is indicative only and subject to change. Subject to the ASX Listing Rules, the directors of the Company reserve the right to vary these dates, including the Closing Date, without notice. The directors may extend the period of the Entitlement Offer or bring forward the Closing Date at their discretion.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Full details of the terms and conditions of the Entitlement Offer are contained in the Offer Document which is available on the ASX website http://www.asx.com.au/ by searching under the ASX Code "MRQ."

Yours faithfully

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SHANE TURNER Director/Secretary

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]